Treasury awards $12M contract for debt collection services to Pioneer Credit Recovery, Inc

Contract Overview

Contract Amount: $12,000,000 ($12.0M)

Contractor: Pioneer Credit Recovery, Inc

Awarding Agency: Department of the Treasury

Start Date: 2026-01-05

End Date: 2027-01-04

Contract Duration: 364 days

Daily Burn Rate: $33.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PRIVATE COLLECTION AGENCY (PCA) SERVICES

Place of Performance

Location: ARCADE, WYOMING County, NEW YORK, 14009

State: New York Government Spending

Plain-Language Summary

Department of the Treasury obligated $12.0 million to PIONEER CREDIT RECOVERY, INC for work described as: PRIVATE COLLECTION AGENCY (PCA) SERVICES Key points: 1. Contract awarded through a full and open competition, suggesting a competitive bidding process. 2. The contract is a BPA Call, indicating it's a task order under a pre-existing Blanket Purchase Agreement. 3. The fixed-price contract type aims to provide cost certainty for the government. 4. The contract duration is one year, with a potential for renewal. 5. The North American Industry Classification System (NAICS) code 561440 points to the 'Collection Agencies' sector. 6. The contract is not set aside for small businesses, indicating a focus on larger, established providers.

Value Assessment

Rating: good

The contract value of $12 million for a one-year debt collection service appears reasonable given the scope. Benchmarking against similar federal contracts for collection agencies is challenging without more specific performance metrics and contract details. However, the firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government. The Bureau of the Fiscal Service's selection of a single awardee under a competitive process implies that Pioneer Credit Recovery, Inc. offered the best value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, meaning all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but the 'full and open' designation implies a robust competitive environment. This approach is designed to ensure the government receives the most advantageous pricing and terms by allowing a wide range of qualified contractors to participate.

Taxpayer Impact: A full and open competition generally leads to better price discovery and potentially lower costs for taxpayers, as multiple companies vie for the contract. It also ensures that the government has access to a broad pool of talent and services.

Public Impact

The primary beneficiaries are the Department of the Treasury and its Bureau of the Fiscal Service, which will receive services to recover outstanding debts. The services delivered include the collection of delinquent debts owed to the federal government. The contract is geographically focused on New York (NY), where Pioneer Credit Recovery, Inc. is based. The contract may have implications for the workforce within the debt collection industry, potentially creating or sustaining jobs at Pioneer Credit Recovery, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in the provided data makes it difficult to assess the effectiveness of the collection efforts.
The contract value is substantial, and the government needs to ensure efficient and ethical debt collection practices are maintained.
Reliance on a single awardee, even from a competitive process, carries inherent risks if performance falters.

Positive Signals

Awarded through full and open competition, indicating a potentially competitive pricing structure.
Firm fixed-price contract type shifts cost risk to the contractor.
The contractor, Pioneer Credit Recovery, Inc., is likely experienced in the debt collection field.
The contract is a BPA Call, suggesting it aligns with a pre-established government-wide purchasing vehicle.

Sector Analysis

The debt collection services sector is a critical component of government revenue recovery. Federal agencies rely on specialized agencies to manage and collect delinquent debts across various programs. The NAICS code 561440 encompasses companies primarily engaged in collecting claims, such as overdue bills, for others. The market for these services can be competitive, with agencies often seeking providers that demonstrate efficiency, compliance, and cost-effectiveness. The total federal spending on collection agencies can fluctuate based on economic conditions and agency needs.

Small Business Impact

This contract was not set aside for small businesses, as indicated by 'ss': false and 'sb': false. This suggests that the competition was open to all responsible sources, and the award was made based on the best value proposition, which may have favored larger or more established firms. There is no explicit information on subcontracting requirements for small businesses within this specific award, but it is a common practice in larger federal contracts to encourage small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the Bureau of the Fiscal Service within the Department of the Treasury. Accountability measures are typically embedded in the contract terms and conditions, including performance standards, reporting requirements, and payment schedules tied to successful debt recovery. Transparency is facilitated through contract databases like FPDS-NG (where this data originates). The Inspector General for the Department of the Treasury would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Department of the Treasury Debt Management
Federal Debt Collection Programs
Bureau of the Fiscal Service Contracts
Accounts Receivable Management Services
Financial Services Contracts

Risk Flags

Potential for performance issues impacting debt recovery rates.
Risk of non-compliance with debt collection regulations.
Reputational risk associated with aggressive or unethical collection practices.
Contract value requires diligent oversight to ensure cost-effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $12.0 million to PIONEER CREDIT RECOVERY, INC. PRIVATE COLLECTION AGENCY (PCA) SERVICES

Who is the contractor on this award?

The obligated recipient is PIONEER CREDIT RECOVERY, INC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Bureau of the Fiscal Service).

What is the total obligated amount?

The obligated amount is $12.0 million.

What is the period of performance?

Start: 2026-01-05. End: 2027-01-04.

What is the historical performance record of Pioneer Credit Recovery, Inc. with the federal government?

Information regarding the specific historical performance record of Pioneer Credit Recovery, Inc. with the federal government is not detailed in the provided data. However, the fact that they were awarded a contract, especially under full and open competition, suggests they met the necessary qualifications and demonstrated capability. To fully assess their track record, one would need to review past contract performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any past performance issues, and their history of successful debt recovery for federal agencies. Without this specific data, it's assumed they possess the requisite experience and reliability for this type of service.

How does the $12 million contract value compare to similar federal debt collection contracts?

Directly comparing the $12 million contract value to similar federal debt collection contracts requires access to a broader dataset of recent awards for collection agencies, including contract duration, scope of services, and the types of debt being collected. Federal debt collection contracts can vary significantly in value based on the volume and age of the debt, the complexity of recovery, and the performance-based fee structures. A $12 million award for a one-year term suggests a substantial volume of debt or a complex recovery process. Benchmarking would ideally involve looking at contracts with similar NAICS codes (561440) awarded by agencies like Treasury, IRS, or others managing large portfolios of delinquent receivables.

What are the primary risks associated with this contract for the Department of the Treasury?

The primary risks associated with this contract include potential performance failures by Pioneer Credit Recovery, Inc., leading to inefficient debt recovery and potential financial losses. There's also a risk of non-compliance with federal regulations and ethical standards in debt collection practices, which could lead to reputational damage and legal challenges. Another risk is the potential for cost overruns if the fixed-price model doesn't adequately account for unforeseen complexities in debt recovery, although the contractor typically assumes this risk. Finally, over-reliance on a single contractor, even from a competitive process, poses a risk if the contractor's capacity or business viability is compromised.

How effective is the Bureau of the Fiscal Service in overseeing debt collection contracts?

The Bureau of the Fiscal Service (BFS) is generally considered to have robust oversight mechanisms for its contracts, given its role in managing federal financial operations. Oversight typically involves establishing clear performance standards, requiring regular reporting from contractors, conducting periodic reviews, and utilizing contract officers to manage the relationship. The BFS also benefits from the broader oversight provided by the Treasury Inspector General's office, which can investigate allegations of fraud, waste, or abuse. The effectiveness of oversight is often tied to the clarity of contract terms, the diligence of contract administration, and the responsiveness to any performance issues that arise.

What is the typical duration and value range for federal debt collection contracts?

Federal debt collection contracts can vary widely in duration and value. Durations often range from one to five years, with options for extension. Values are highly dependent on the volume and type of debt being managed. Contracts can range from a few hundred thousand dollars for specialized, smaller portfolios to tens or even hundreds of millions of dollars for large-scale, long-term debt recovery efforts across multiple agencies or programs. The $12 million for a one-year term awarded to Pioneer Credit Recovery, Inc. falls within a moderate to significant range, suggesting a substantial scope of work.

What are the implications of using a BPA Call versus a direct award for this service?

Using a BPA Call (Blanket Purchase Agreement Call) implies that the Department of the Treasury has already established a pre-negotiated BPA with one or more vendors for collection services. This BPA likely contains pre-approved terms, conditions, and potentially pricing structures. Issuing a 'call' or task order against this BPA allows for quicker procurement compared to a full, open competition for each individual need. While the initial BPA competition ensures value, the subsequent calls might offer less direct price competition than a standalone full and open competition, though they are generally more efficient and cost-effective for recurring needs.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › Collection Agencies

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 2033H626Q00038

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Pioneer Credit Recovery Inc

Address: 26 EDWARD ST, ARCADE, NY, 14009

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,000,000

Exercised Options: $12,000,000

Current Obligation: $12,000,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 2033H625A00010

IDV Type: BPA

Timeline